US$12 million credit approved for Cayambe-Tabacundo irrigation system

December 05, 2005

3,100 new hectares into irrigation, significantly strengthening the local economy and improving the living conditions of approximately 30,000 inhabitants.

In November 2004, considering that this work is priority for Pichincha province, a CAF technical commission visited the project site to structure a financing scheme by phases to use the built infrastructure and make progress toward completion of the work. On this basis, an "Immediate Investment Plan" was formulated for US$16.5 million for the first stage, of which CAF is today contributing US$12 million. The remaining US$4.5 million will be contributed by the provincial council, Pedro Moncayo municipality, the beneficiary communities and the users of the irrigation system.

The Cayambe-Tabacundo irrigation system, in addition to bringing 3,100 hectares into cultivation, will increase the supply of water for human consumption, create rural employment, develop a competitive agricultural and livestock industry, promote agro-export projects, reforest vulnerable areas and preserve the natural resources and environment of the project, as well as structuring a participative institutional scheme for the management and operation of the system.

In the first phase of the project, the intake will be built on the La Chimba River, consisting of a small dam 15 meter long and 4.30 meters high, a counter-regulation lagoon with 45,000 m3 capacity, building of five bridges along the main canal, secondary and tertiary distribution networks, bank protection works on the main canal, and environmental education activities.